Jeff Bezos, founder and executive chair of Amazon, is set to sell $5 billion of shares of the e-commerce giant. The selling of 25 million scrips by Bezos will reduce his stake in Amazon to 8.8 per cent or 912 million shares.
Amazon’s shares on Wednesday fell 1.21 per cent to $197.59 after the Bezos stake sale reports. The shares had hit an all-time high of $200.43 in the previous day. In the year 2024 so far, Amazon has jumped over 30 per cent, compared with a 4 per cent gain in the Dow Jones Industrial Average Index.
In February, Bezos had sold shares worth roughly $8.5 billion, after the stock rallied 80 per cent in 2023.
Bezos is ranked the second-richest person in the world with a net worth of $214.4 billion, according to Forbes. He is also the founder of space company Blue Origin, which launched a six-person crew to the edge of space in May.
Amazon posted upbeat first-quarter results in April, as the Seattle-based technology giant rode the artificial intelligence wave. The company recently replaced Adam Selipsky as the head of its cloud computing unit with insider Matt Garman.
This stake sale by Bezos represents a strategic decision by Bezos, likely aimed at diversifying his investment portfolio and funding various ventures and philanthropic efforts.
Jeff Bezos stepped down as the CEO of Amazon in 2021 to become the executive chairman of its board. He was succeded by Andy Jassy.
Since stepping down from the helm of Amazon, Bezos has dedicated much of his time to Blue Origin, his space exploration company, and to the Bezos Earth Fund, his climate change initiative. The proceeds from the stock sale are expected to bolster these efforts, particularly as Blue Origin ramps up its ambitious plans for space travel and the Earth Fund continues its substantial environmental conservation projects.
Jeff Bezos started Amazon in July 1994, a time when the internet was mostly used by governments and schools.
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